Dollar Stalls Near Three-Month Low Ahead of Key PMI Data

The US Dollar (USD) Index struggled to stage a rebound on Friday and stayed slightly above its three-month low of 98.50 set on Thursday.

Preliminary August Manufacturing and Services Purchasing Managers' Index (PMI) data from Germany, the Eurozone, the UK, and the US will be featured in the economic calendar on Friday.

DBS Group Research economist Chang Wei Liang noted that the recent adjustment to US Treasury buybacks is unlikely to have a significant impact on markets, but geopolitical risks could reinforce the Dollar's bid.

An expected tightening of US sanctions on Iran could pose unintended consequences, including risks of bolstering inflation expectations and lifting both US yields and the USD.